Absorption Rate

Dictionary Says

Definition of 'Absorption Rate'

The rate at which available homes are sold in a specific real estate market during a given time period. It is calculated by dividing the total number of available homes by the average number of sales per month. The figure shows how many months it will take to exhaust the supply of homes on the market. A high absorption rate may indicate that the supply of available homes will shrink rapidly, increasing the odds that a homeowner will sell a piece of property in a shorter period of time.
Investopedia Says

Investopedia explains 'Absorption Rate'

For example, suppose that a city has 1,000 homes currently on the market to be sold. If buyers snap up 100 homes per month, the supply of homes will be exhausted in 10 months (1,000 homes divided by 100 homes sold per month). If a homeowner is looking to sell a piece of property, he knows that half of the market will be sold out in five months. This rate does not take in to account additional homes that enter the market. The absorption rate can also be a signal to developers to start building new homes.
Search results for

'Absorption Rate'

  • Toll Teetering

    http://stocks.investopedia.com/stock-analysis/2011/Toll-Teetering-TOL-PHM-DHI-HOV-BZH-KBH0825.aspx
    ... West and Mid-Atlantic regions, and order cancellation rates jumped to 7.4% (almost
    double the rate of the second quarter), while the absorption rate dropped 6 ...
  • After The Recession: A US Bank Body Count - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1009/After-The-Recession-A-U.S.-Bank-Body-Count.aspx
    ... Citigroup kicked off the mega-mergers in 1998 with the absorption of insurance group
    Travelers. ... Rate this Article: Your Rating: Overall Rating: Vote Now! ...
  • Eat Healthy And Save Money - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1211/Eat-Healthy-And-Save-Money.aspx
    ... Fiber fills you up with fewer calories, slows down digestion and decreases absorption
    of fat and ... Rate this Article: Your Rating: Overall Rating: Vote Now! ...
  • Trick Or Treat For Biodel?

    http://stocks.investopedia.com/stock-analysis/2010/Trick-Or-Treat-For-Biodel-BIOD-HALO-SNY-LLY-NVO1021.aspx
    ... The addition of this enzyme appears to increase the speed of insulin absorption,
    and could make these insulins significant competitors to the ... Rate this Article ...
  • Building Investments In 2010

    http://stocks.investopedia.com/stock-analysis/2010/Building-Investments-In-2010-LEN-PHM-NVR-DHI-TOL0121.aspx
    ... time that the housing sector would suffer and that pending the absorption of a ... By
    Aryeh Katz. Filed Under: Real Estate,Stock Analysis. Rate this Article: Your ...
  • 3 Transport Stocks That Deliver

    http://stocks.investopedia.com/stock-analysis/2008/3_Transport_Stocks_That_Deliver_BNI_FDX_UNP.aspx
    ... with higher fuel prices and impairment charges related to the absorption of Kinko's ...
    Filed Under: ETFs. Rate this Article: Your Rating: Overall Rating: Vote Now! ...
  • Oil Service Pricing On The Move

    http://stocks.investopedia.com/stock-analysis/2010/Oil-Service-Pricing-On-The-Move-COG-NFX-HAL-WFT-SLB0727.aspx
    ... This absorption of capacity has led to price increases that vary by product line
    and by basin, with ... Rate this Article: Your Rating: Overall Rating: Vote Now! ...
  • Oil Services Earnings Hint At Recovery

    http://stocks.investopedia.com/stock-analysis/2010/Oil-Services-Earnings-Hint-At-Recovery-HAL-SII-NOV-SLB0430.aspx
    ... with the secular trend toward more service intensive work resulted in a meaningful
    absorption of the ... Rate this Article: Your Rating: Overall Rating: Vote Now! ...

Related Articles

Bank Rates
Product Today Last Wk
$10K MMA 0.50% 0.51%
MMA 0.45% 0.46%
6 Month CD 0.46% 0.47%
1 Year CD 0.70% 0.75%
5 Year CD 1.46% 1.46%
1 Year Jumbo CD 0.66% 0.67%
Rate data provided by Bankrate
Product Today Last Wk
$30K HELOC 4.59% 4.59%
$30K Home Equity Loan 5.74% 5.75%
$50K Home Equity Loan 5.45% 5.46%
$50K HELOC 4.24% 4.24%
$100K Home Equity Loan 5.41% 5.41%
$100K HELOC 4.13% 4.13%
Rate data provided by Bankrate
Product Today Last Wk
30 Year Fixed 3.82% 3.73%
15 Year Fixed 3.11% 3.03%
1 Year ARM 3.54% 3.53%
30 Year Fixed Jumbo 4.38% 4.39%
5/1 ARM 2.67% 2.68%
3/1 ARM 2.69% 2.69%
Rate data provided by Bankrate
Product Today Last Wk
60 Month Used Car Loan 4.51% 4.51%
48 Month Used Car Loan 4.35% 4.35%
48 Month New Car Loan 3.24% 3.24%
36 Month Used Car Loan 4.34% 4.35%
36 Month New Car Loan 3.11% 3.13%
60 Month New Car Loan 3.35% 3.34%
Rate data provided by Bankrate
Partner Links